International Cooperation and Intra-Industrial Transactions
AbstractThe paper examines theoretically the empirical observation or increasing levels of intra-industrial trade flows. The relationship between intra-industrial trade and consumer preferences in addition to product differentiation advanced by internationally active firms are discussed within the framework of a simple model of international trade in differentiated goods. In an international free trade scenario, ranking high in product differentiation and monopolistic market structures, the intensity of international trade activities steadily rises as the structure of consumer preferences exhibits demand pattern similarity: export and import levels rise simultaneously. Intra-industrial commodities exchanges as well as investment cross-hauling of multinational enterprises prove to be important vehicles international cooperation among nation.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 18705.
Date of creation: 1988
Date of revision:
intra-industrial trade; consumer preferences; product differentiation; international trade; multinational enterprises;
Find related papers by JEL classification:
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
- F2 - International Economics - - International Factor Movements and International Business
- F1 - International Economics - - Trade
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3445092, Harvard University Department of Economics.
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- Broll, Udo & Gilroy, Bernard Michael, 1985. "Developing Countries in Light of Intra-Trade," MPRA Paper 18046, University Library of Munich, Germany.
- Gilroy, Bernard Michael & Broll, Udo, 1987. "West Germany - Expanding Where The Markets Are," MPRA Paper 18156, University Library of Munich, Germany.
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"Schweizerische Pflichtlagerhaltung und ihre Finanzierung
[Swiss obligatory stockpiling and its financing]," MPRA Paper 21083, University Library of Munich, Germany.
- Bernard Michael Gilroy, 1991. "Schweizerische Pflichtlagerhaltung und ihre Finanzierung," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 127(III), pages 431-443, September.
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